Maldives Tourism Minister Ibrahim Faisal and the new Managing Director of MMPRC, Fathimath Thaufeeg, are looking into why the increase in tourists coming to the Maldives hasn’t led to more money coming in.
The government aimed to welcome 1.8 million tourists this year, and that goal was reached on Wednesday with the arrival of the 1.8 millionth tourist. However, Faisal pointed out that even though more tourists are coming, the money earned hasn’t gone up accordingly.
“We’ll look into the details to find out why. Our focus is on adjusting our strategy accordingly,” said Faisal.
Faisal also pointed out the difference in spending habits between high-end resorts, which attract wealthier tourists, especially from Russia, and guesthouses that cater to backpackers staying for shorter periods.
“Guesthouses have shorter stays, mainly with backpackers, while high-end resorts attract wealthy tourists who spend more,” Faisal noted.
Fathimath Thaufeeg from MMPRC shared plans to improve advertising for the Maldives, expressing concern that the revenue doesn’t match the increase in tourists.
“We’re planning to reach more markets for the Maldives. Our goal is to improve global branding and come up with a comprehensive plan,” she explained.
Despite a record number of tourists, Maldives hotels and resorts had the weakest performance in the Asia Pacific region. According to a recent report by Whitebridge, a hospitality advisory firm, Maldives’ Gross Operating Profit Per Available Room (GOPPAR) was at -11.8%, the worst in the region. Tokyo, with a GOPPAR of +1,420%, was the best performer in Asia Pacific.
Maldives experienced significant losses during the off-season, with high operating costs resulting in losses in September 2022 and June 2023.
Recent data from the Maldives’ central bank, the Maldives Monetary Authority (MMA), showed a decline in the tourism industry’s occupancy rate to 53% in October 2023, down from 58% in October 2022. The report attributed the drop to an increase in bed capacity, outpacing the growth in tourist arrivals. The average stay of tourists also decreased from 8.1 days in October 2022 to 7.6 days in October 2023.
In summary, even though the number of tourists increased, there are concerns about the revenue not matching up, and efforts are being made to address this issue and improve the overall performance of the tourism sector in the Maldives.
